Encouraging Jobs Data Lifts Equities; Exxon and Pfizer Slip

By Avi Salzman

The government released data on productivity and weekly jobless claims this morning, and Advanced Data Processing (ADP) unveiled its estimates for October private sector job growth. Productivity rose 1.9%, a hair below economists’ expectations for 2% growth. In the near-term, productivity gains are in line with historical averages. “Productivity is the key to GDP growth and while the past two quarters are showing gains almost in line with the long term average of 2.1%, it’s only averaged 1.2% over the past 3 years and accounts for the sluggish GDP growth,” wrote Miller Tabak strategist Peter Boockvar.

ADP said the economy added 158,000 private sector jobs in October, which is more than the 120,000 new private sector jobs that economists expect the government to announce tomorrow in the nonfarm payrolls report. Weekly jobless claims also fell by 9,000 to 363,000 last week, the government said today.

Dow futures rose 18 points; S&P 500 futures rose 1.5 points.

Numerous companies reported earnings, and some retailers released their October same-store sales data. And the ISM manufacturing report is set to be released at 10 a.m.

Exxon Mobil (XOM) fell 0.8% after beating earnings and revenue expectations, although production fell. Revenue fell less than expected.

Pfizer (PFE) fell 1.9% after beating EPS expectations by a penny, but missing expectations on the top line and issuing disappointing guidance.

Allstate (ALL) rose 1.4% after its third-quarter earnings quadrupled on lower disaster claims. “It’s too early to estimate the impact of Hurricane Sandy on Allstate’s fourth quarter earnings,” said CEO Thomas Wilson, according to Briefing. “However, this catastrophe is not expected to have a material impact on Allstate’s overall financial condition. Allstate is amply well-capitalized to meet its obligations to policyholders.”

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